If you’ve never heard of Edward Jay Epstein, you should know that he’s an investigative reporter. Epstein came up in the old school, back before cable news and the Internet combined to ruin the field of journalism. He’s the author of 16 books, all of which question the establishment narrative on major issues, beginning with a critique of the Warren Commission’s findings and continuing all the way up through Edward Snowden. And when he’s not writing, Epstein works as an adjunct professor at both Harvard and MIT.
You know, as one does with one’s spare time.
I recently stumbled across one of Epstein’s books from the 1980s, “The Diamond Invention“, and made a spot decision to grab it. This book was absolutely fascinating, the result of Epstein’s worldwide travels researching the ins and outs of the modern diamond industry.
And even though I normally avoid posting spoilers, I wanted to share a number of Epstein’s key points, just in case you never manage to come across a copy of this rare book:
-A diamond is nothing more than a crystallized chunk of carbon. The diamond’s real utility stems from the fact that they’re the hardest known natural substance, and industrial-grade diamonds are absolutely vital to the mining and metalworking industries. These stones are so critical to manufacturing that during the Second World War, both the Axis and Allied powers viewed their diamond mines and supply chains as national security concerns.
-It’s nearly impossible to go out and mine your own diamonds. While anybody might be able to go out to a riverbed and try their luck panning for gold or silver, there are massive start-up costs involved in diamond mining. Also, these stones have only been found in a few places on Earth— Australia, Brazil, Russia, and sub-Saharan Africa— and once a potential diamond field is discovered, it’s always kept under tight government control.
-Even if you did somehow manage to access to a steady supply of diamonds, it’d be extremely hard to sell them. The only factor that affects the value of diamonds is their scarcity, so the DeBeers conglomerate has expended a great deal of capital and influence to monopolize the global distribution network. Epstein described a process where DeBeers placed strict limits on how many diamonds were made available for purchase every year, and potential buyers were required to purchase them in pre-arranged box sets. Buyers who were caught purchasing diamonds from other companies could find themselves blackballed— cut off from the world’s largest supplier— and possibly run out of business altogether.
-Gem-quality diamonds are much rarer than common, industrial-grade stones. But as beautiful as they might be, even these diamonds have no inherent value. Their popularity as engagement gifts is relatively new, and came about due to a slick marketing campaign that followed the Great Depression of the 1930s.
-It’s nearly impossible to sell a diamond. Okay, maybe this statement is a little outdated in the era of Facebook Marketplace, but for decades ,DeBeers’ advertisements trumpeted the idea that diamonds were meant to be given as lifetime keepsakes. With that in mind, what woman would want to enter into marriage with a secondhand gem? A leftover from somebody else’s failed attempt at “happily ever after”? This stigma still persists today, which means that a quick trip to the pawn shop is really the only option for offloading an unneeded engagement ring.
After reading Epstein’s book, I’ve come to realize that the global diamond market seems a lot less like it was portrayed in the 2006 movie “Blood Diamond”, and much more like a global corporate monopoly.
And in an interesting twist— according to the shopkeeper who rang up my purchase, anyway— the DeBeers conglomerate supposedly spent years buying up copies of “The Diamond Invention”, doing their best to keep open-minded readers from reading Epstein’s expose.
Which begs the question… what is it that they don’t want you to know?